Natural Resource Governance Institute (NRGI), has unveiled the 2017 Resource Governance Index. The index includes new assessments of oil, gas and mining governance in 81 countries.
It comprises primary research on value realization and revenue management, and draws on existing research to paint a picture of countries’ enabling environments for governance.
The assessments take into account laws and practices concerning licensing, taxation, state-owned enterprises, sovereign wealth funds, subnational revenue sharing, national budgeting, local impacts of extraction, and more.
According to the NGRI, Nigeria has ranked 55th out of 89 countries in the governance of oil resources, the 2017 Resource Governance Index’ (RGI) released on Wednesday, June 28.
However, licensing remains the weakest link in Nigeria’s oil and gas value chain, the new report said, placing Nigeria 77th among 89 countries in licensing assessments.
The report scored Nigeria 42nd out of 100 in its overall assessment of resource governance in the extractive sector.
The report also said Nigeria’s Excess Crude Account tied for the world’s most poorly governed sovereign wealth fund.
“Government should focus on the implementation of laws and regulations in the extractive sector and work towards shedding light on beneficial owners of companies and deals that it enters,” said Sarah Muyonga, NRGI Nigeria Manager, in a presentation of the recommendations of the report.
“In terms of revenue sharing, Nigeria ranks 11th, alongside the United States (Gulf of Mexico) and Ecuador.
"The public lacks access to audited information on revenue flows to lower levels of government, and this contributes to the gap between the quality of the legal framework and actual implementation.
“NNPC, the largest SOE on the continent, achieved a poor governance score of 44 out of 100. NNPC has recently strengthened some of its reporting practices, particularly for high-level financial data.
“However, the company does not disclose detailed annual reports on its finances in spite of top officials having made a commitment to do so.
Government agencies and external auditors have disputed NNPC’s interpretation of rules set in the constitution and the NNPC Act governing monetary transfers between NNPC and the government,” the report said.
Meanwhile, NAIJ.com earlier mentioned that the restart of the Forcados loading for oil export has increased Nigeria’s oil production to 1.68 million barrels per day which is the highest in more than a year.
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This is according to the Organisation of Petroleum Exporting Countries (OPEC) monthly report for the month of June released on Tuesday, June 13.
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